In models with complete markets, targeting core inflation enables monetary policy to maximize welfare by replicating … stabilize price movements in the flexible price sector. Also, in the presence of financial frictions, stabilizing core inflation … frictions a welfare-maximizing central bank should adopt flexible headline inflation targeting – a target based on headline …

This paper explores the role of exchange rates in emerging economies with inflation-targeting regimes, an issue that … has become especially germane during the current episode of financial turmoil and volatile capital flows. Under inflation … targeting, the interest rate is the main monetary policy tool for influencing activity and inflation, and there is little …

This paper analyzes the monetary policy response to rising inflation in emerging and developing countries associated … with the food and oil price shocks in 2007 and the first half of 2008. It reviews inflation developments in a sample of … of inflation; provides a synthesis of policy responses taken against the background of the conflicting objectives and …

been based on discretionary targeting of broad money without any clear target to anchor inflation expectations. This paper … are required to strengthen the ability of the CBY in achieving low and stable rates of inflation over the medium term. …

This paper provides an overview of inflation targeting frameworks and macroeconomic performance under inflation … targeting. Inflation targeting frameworks are generally quite similar across countries, and a broad consensus has developed in … favor of "flexible" inflation targeting. The evidence shows that, although inflation target ranges are missed frequently in …

Inflation targeting (IT) serves as monetary policy framework in several advanced economies, where it has enhanced … instruments to inflation. These prerequisites are largely absent among developing countries, though several of them could with … some further institutional changes and an overriding commitment to low inflation make use of an IT framework. …

Uruguay’s inflation and inflation expectations exceed the inflation target, and the gap has been widening in recent …

developments should be monitored closely and monetary policy tightened further should inflation pressures increase. The …

The recent global financial crisis has exposed the limitations of a conventional inflation targeting framework in … and inflation. Possible refinements to the inflation targeting framework in Korea were investigated by taking into account … business cycle fluctuations by mitigating the buildup of factors that lead to large fluctuations in output and inflation. …